Dynamic Metals (ASX: DYM) has zeroed in on drilling targets after jagging promising infill gold-in-soil anomalies that follow-up previous stunning rock chip samples grading up to 2040 grams per tonne gold. The recent 755-soil sample program defined several zones greater than 100 parts per billion at its historic Cognac West prospect within the company’s wider Widgiemooltha project, about 80km from Kalgoorlie.
The company plans to bring in a reverse circulation (RC) drill rig early next year to interrogate the targets in its maiden campaign, defined from the latest soil sampling and previous geochemical and rock chip programs.
Management says it is in a strong position to plunge the drill bit into the prospective site with more than $5 million sitting in the kitty currently.
Dynamic’s initial soil program saw it grab 895 soil samples every 50m along 200m spaced east-west lines, with three areas exhibiting gold anomalism of more than 25ppb.
Further encouraging anomalies grading 490ppb and 220ppb were returned from the 3km by 2km zone sampled.
The promising results prompted the company to conduct geological mapping and rock chip sampling on the ground, where a super-impressive rock chip going a stellar 2040g/t gold and 53.1g/t were picked up in previous passes.
Other solid assays showing 8.95g/t, 5.91g/t and 3.27g/t further highlighted Cognac West’s prospectivity.
The latest samples were collected with tighter 25m by 100m spacings and threw up grades higher than 100ppb.
We are delighted with the outcome of this program which, after a comprehensive evaluation of the relationship between the complex geology and the surface geochemical footprint through our mapping and sampling activities, has defined specific targets for drill testing.
Dynamic Metals Managing Director Karen Wellman
All preparations and permitting to drill Cognac West early next year are underway.
Dynamic says the project has seen near-surface historical exploration dating back to the 1970s, consisting of soil sampling and shallow drilling, with the assaying generally completed for gold only.
An impressive peak result of 1m going 91.3g/t gold from 41m was received from previous exploration efforts at the prospect.
Management says it is applying a systematic and methodical approach to generating gold targets at Cognac West, based on gathering vital data from its range of exploration efforts to provide it with a higher level of confidence in its drill targeting.
And it may well be in the right area for a discovery too with its ground close to several million-ounce gold mines such as Gold Fields’ St Ives underground and open-pit operations and Westgold Resources’ Higginsville mine.
Notably, the biggest gold nugget ever discovered in WA was found locally.
The 32.2kg monster known as the “Golden Eagle” nugget was discovered in the nearby goldfields at Larkinville in 1931 and required two men to lift it properly.
It was unearthed by a 17-year-old boy who encountered the rare find less than half a metre below surface while prospecting with his father.
A cast replica of the nugget sits in the WA School of Mines’ mineral museum in Kalgoorlie.
Dynamic remains cashed-up after its recent decision to sell 40 per cent of the lithium rights at the Widgiemooltha project to mining giant Mineral Resources (MinRes) as part of a joint venture (JV) agreement between the two firms.
Dynamic received $4m from MinRes for the initial interest in the project’s lithium rights, with a further $1m to be paid in July next year.
MinRes can solely fund $15m in exploration costs within four years to increase its stake in the JV to 65 per cent.
The gold price has been continuing its gangbuster run lately, with it now trading at US$2700 (A$4233) per ounce.
For Dynamic, it may be a case of the right time-right place with gold up more than 30 per cent this year.
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